Unilever Faces Battle To Reduce Plant-Based Meat Exposure

Unilever may struggle to attract buyers for its plant-based meat business, complicating the company’s plan to cut its exposure to products which are falling out of favour with consumers, industry experts said.

Unilever had hoped to emulate the success of industry leaders Beyond Meat and Impossible Foods, which had dominated the $17 billion meat alternatives market after being founded in 2009 and 2011 respectively.

Brands like Unilever’s Vegetarian Butcher and Nestlé’s Garden Gourmet sought to replicate the taste and texture of real meat using plant-based ingredients like beans.

They appealed to consumers seeking a healthier alternative to meat and more environmentally friendly products.

But a broader trend among consumers to switch to fresh rather than processed produce has hit their popularity over the past two years.

The shift in consumer taste has prompted Unilever to plan a sale of The Vegetarian Butcher, a brand it bought in 2018, according to two sources with knowledge of the deal. But it may struggle to fetch an attractive

The brand generates only around €50 million in annual sales and is loss-making, one consumer sector banker said.

The business may appeal to trade buyers price, according to two other financial advisers to the food industry.including meat producers looking to diversify into plant-based alternatives, another banker said.

Unilever declined to comment on the future of the business or on any sale process including a likely valuation.

Both Unilever and Nestlé are planning to slim down and focus on fewer and more profitable brands.

Unilever had previously backed The Vegetarian Butcher brand, opening a ‘Vegan Butchery’ deli shop in Rotterdam in 2023, and striking deals with Burger King and Subway.

ESM